Matriarch Incorporated Uses a Job-Order Costing System and a Predetermined

question 101

Essay

Matriarch Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours.
At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and machine hours would be 8,000.
The following information pertains to November of the current year:
Job 10 Job 11 Job 12 Total
Work-in-process, Nov. 1 $16,000 $26,000 $38,000 $80,000
November production activity:
Materials requisitioned $4,000 $4,800 $7,200 $16,000
Direct labor cost $2,400 $3,600 $4,000 $10,000
Machine hours 400 700 900 2,000
Labor hours 120 180 200 500
Actual manufacturing overhead cost incurred in November was $61,000.
Required:
a. Compute the predetermined overhead application rate.
b. Determine the total cost associated with each job.
c. If jobs 10 and 12 were completed, prepared the journal entry to move the cost.
d. If job 10 was delivered to customers that paid $50,000 cash, prepare the journal
entries.
What is the gross profit for job 10?
e. Assuming no beginning work in process, what is the cost assigned to ending work in
process?
f. Assuming no beginning finished goods what is the cost assigned to ending finished goods?
g. How much was overhead over/underapplied?

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Definitions:

Functionalism

A theoretical perspective in sociology and anthropology that interprets each part of society in terms of how it contributes to the stability of the whole.

Conflict Theory

A sociological perspective that emphasizes the social, political, or material inequality of a social group, analyzing the broad socio-political system and its structural components of conflict.

Stratification

refers to the division of society into different classes or layers, often based on wealth, power, or social status.

Social Inequality

Uneven opportunities and incentives exist for diverse social statuses or positions within a group or society.